Owners could end up paying £100s a year in new tax near Crossrail 2 stations
The owners of hundreds of thousands of home across London near the planned new Crossrail 2 could face paying to fund 0 billion transport scheme with some forking out £520 a year.
A new analysis of what it would cost if the idea from Transport for London of home owners contributing to the fund was approved shows that 315,000 properties could end up paying out.
Transport for London is considering introducing a levy to fund Crossrail 2 which will run from Broxbourne in Hertfordshire to Epsom in Surrey through central London. Home owners in areas such as Kingston upon Thames, Surbiton and Raynes Park would be affected.
A new analysis for Estate Gazette looks at how, under the plan, three zones would be created stretching a kilometre from each station and each zone, mapped out in concentric circles, would have a scaled charge, known as the Transport Property Charge.
It has calculated that home owners would pay a combined £120 million annually, with those living closest to the stations paying up to £520 a year with the new tax being collected as part of the current council tax.
There is also a less costly plan that would see home owners closest to stations paying £10 per week, £7.50 per week in the middle ring and £5 per week in the outer ring, amounting to £300, £200 and £100 per year.
It is likely that tenants would have to pay the charge rather than landlords. Crossrail 2 is also considering how it can charge the owners of offices, shops and other commercial property around the stations.
On top of the 35 proposed London stations, a further 12 stations outside the capital are planned. People living near these could see charges imposed but these would likely need to be implemented and agreed individually with local councils.
An application is due to be made to parliament to build Crossrail 2 in 2021 or 2022 with the aim of it being open to the public in the early 2030s.
‘This will be an extra charge for those already struggling with housing affordability. Although home owners are expected to benefit from Crossrail 2 over the long term, it will be the tenants rather than the landlords who will likely carry the burden of the increase in council tax,’ said Paul Wellman, senior analyst at EG.
‘It is understandable and rational that Transport for London will want to capture some of the uplift in values, especially with the UK Government expecting London, rather than central government, to pay the bulk of its cost,’ he added.
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